SOURCE: PHL Local Gaming

Millennium 3 Management

December 16, 2013 12:27 ET

PHL Local Gaming: Fortuna Realty Group Provides Letter of Intent for LoSo Entertainment Center Hotel

PHILADELPHIA, PA--(Marketwired - December 16, 2013) - PHL Local Gaming, one of five bidders for the available Category 2 gaming license in Philadelphia, today announced that it has received a letter of intent from New York City-based Fortuna Realty Group for the development of a four-star hotel as part of PHL Local's vision for its Casino Revolution-related LoSo Entertainment Center.

Fortuna Realty is a vertically integrated real estate investment and development company with a focus in hospitality, and a proven track record in commercial investments. Fortuna Realty Group's holdings include the new Hotel Hugo in SoHo; the legendary Garden City Hotel on Long Island; a Starwood Aloft, under development; a 77-acre complex situated near Walt Disney World; and 1150 Avenue of Americas, the former Pan American building.

The proposed, new hotel development would be primarily designed to accommodate LoSo visitors, and would be a separate lodging facility from the 250-room hotel already included in PHL Local's Casino Revolution gaming application.

The additional hotel would be contingent upon PHL Local Gaming being awarded the City of Philadelphia's second casino gaming license, in 2014, and is projected to be a 250-room property. It would be located on the LoSo footprint, which would extend from Packer Avenue to the North, Front Street to the East, Pattison Avenue to the South and 7th Street to the West, in South Philadelphia.

Principal and founder of Fortuna Realty Group, Morris Moinian, said his firm has a "strong desire to co-develop a hotel with PHL (Local Gaming) in that area (LoSo), if PHL is awarded the casino license."

Announced in September of this year, PHL Local Gaming's LoSo Entertainment Center would be a key feature of its Casino Revolution gaming complex. PHL Local Gaming's president, Joseph Canfora, said the LoSo concept would serve as a catalyst for positive economic transformation in a section of the Lower South Philadelphia community that has, in recent decades, been dominated by industrial and warehouse facilities. He added that the concept would also attract developers and investors to the area, creating a potential 6059 direct and indirect employment opportunities.

Fortuna's director of acquisitions and asset management, Ashish Lall commented on the LoSo vision: "Fortuna agrees that by transforming the area from FDR Park to the Delaware River Waterfront into a recreation, leisure and entertainment destination, this project will bring many economic and social benefits to the area."

As envisioned, LoSo would include attractions such as food-and-beverage and retail businesses, soccer fields, racquet sports, an indoor swimming pool, a zip-line park, rock-climbing facilities, a golf driving range, a dry ski/skateboarding park, a water park, and areas devoted to music and live entertainment.

According to Nicholas M. Lillo, PHL Local Gaming's development consultant, the letter of intent with Fortuna Realty is just the latest in a series of expressions of interest by potential investors and national/global brands in the LoSo Entertainment Center Complex.

"In recent weeks," said Lillo, "brands such as Lucky Strikes Bowling Lanes; Bobby's Burger Palace; F.A.M.E. Night Market and Ultra Lounge; Rice and Company Restaurant, Sushi Bar and Lounge; Todd English Pub; Texas de Brazil Brazilian Steakhouse; Ill Mulino; and Bassett's Original Memphis Pit BBQ, among others, have all spoken to us about their interest in potential affiliation with the Casino Revolution/LoSo complex, should PHL Local Gaming win the Commonwealth of Pennsylvania's Philadelphia gaming license."

About PHL Local Gaming

If successful in its bid for the available casino management license in Philadelphia, PHL Local Gaming, LLC plans to open "Casino Revolution," a $428 million, four-star-quality "destination-caliber," 250-room hotel and gaming facility. The casino will offer, within 18 months of winning the Category 2 license, 2400 slots, 105 table games, a steak house, a coffee/espresso bar, a high-end Italian restaurant, a 300-seat buffet, a 156-seat café and a covered, 1600-car garage.

PHL Local Gaming has said that it is able to open its casino at least 6 months earlier than any of the other five bidders, producing 600 jobs, $10 million in wages and $42 million in state and city taxes, before any of the other bidders would be able to open for business. Given its 25-acre site, PHL Local Gaming also has emphasized that it has the capacity to expand to the Commonwealth's 5000-slot maximum, over time, unlike most of the other bidders.

About Fortuna Realty Group

Fortuna Realty Group, LLC (FRG) is a privately held real Manhattan-based estate investment and development company, founded in 1984 by Morris Moinian. The firm continues to expand its footprint by acquiring and developing assets and engages in select strategic partnerships for value-add and opportunistic investments throughout the United States, specializing in high-end hotel and real estate assets. Fortuna Realty Group's holdings include Hotel Hugo and the Hotel Indigo in Manhattan; The Garden City Hotel on Long Island; in partnership of Mr. C in Beverly Hills; Sugar Bay Resort and Spa in St. Thomas, U.S.V.I. and Revolve, a dynamic indoor cycling experience designed for fitness enthusiasts seeking a fun and challenging full-body workout, with locations in New York City and Washington, D.C. For more information, please visit www.fortunarealtygroup.com.

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